FibreCo will offer wholesale access of the FFTH broadband network to all telecommunications service providers with an aim to fully exploit the potential of the infrastructure

Vodafone_Shop,_Hauptstraße_43,_97941_Tauberbischofsheim_2

Vodafone and Altice to create joint venture, FibreCo. (Credit: Triplec85/ Wikimedia Commons)

Vodafone Group and French telecommunications company Altice plan to launch a €7bn joint venture (JV) called FibreCo to deploy fibre-to-the-home (FTTH) to up to seven million homes over a six-year period in Germany.

The joint venture will be owned by 50% by Altice and 50% by Vodafone Germany.

Geodesia, a subsidiary of Altice, has been given a contract to execute the majority of roll-out construction and maintenance.

Vodafone Germany will market FibreCo’s FTTH broadband network to new customers on an exclusive basis.

FibreCo will offer wholesale access of the FFTH broadband network to all telecommunications service providers with the objective of fully exploiting the potential of the infrastructure.

According to Vodafone, approximately 80% of the roll-out will be focussed on large housing associations in the company’s existing hybrid fibre cable network footprint which have interest in FTTH upgrades. The remaining 20% will be focussed on neighbouring houses, outside of Vodafone’s present footprint.

Vodafone Group chief executive Nick Read said: “This partnership builds on Vodafone’s significant next generation network with Altice’s industrial expertise and proven Fibre-to-the-Home construction capabilities enabling us to bring gigabit connectivity to even more customers in Germany.

“We are proud of our long-standing relationships with housing associations and pleased as a trusted provider to bring more connectivity options for tenants.

“This significant infrastructure investment supports the country’s social, economic and digital development and the broadband ambitions of the German government as part of Europe’s Digital Decade targets.”

As per the terms of the joint venture deal, Vodafone will get cash proceeds of up to €1.2bn from Altice. The amount would exceed the former’s equity contributions to the joint venture over time.

Altice co-CEO David Drahi said: “We are delighted and honoured to join forces with Vodafone to build and operate a FTTH network connecting up to 7 million premises in Germany.

“Altice’s existing presence in Germany through Geodesia, its unique track record in operating over 45 million homes with the latest very-high speed fibre networks across Europe and the US, together with Vodafone’s competitive position as anchor tenant will help us establish one of the largest FTTH ventures in Europe.

“We have pioneered fibre joint ventures in France and Portugal, and are thus thrilled to be able to replicate such a feat in Germany with such a partner.”

The creation of the joint venture, which is subject to customary closing conditions and regulatory approvals, is anticipated to be finalised in the first half of 2023.